Gascoyne Resources gets go-ahead for mining of Never Never and Gilbey’s North gold deposits
Drilling on the western flank of Gascoyne Resources’ Gilbey’s North target has returned an average grade of 12.5g/t gold across a 59m intercept.
Western Australia’s mining regulator has approved an updated development proposal for Gascoyne Resources’ (ASX: GCY) Dalgaranga gold project, clearing the way for mining of the high-grade Never Never and Gilbey’s North deposits.
The company expects to commence mining of these areas next month, and will also work to extend the mineralised footprint of the Gilbey’s East deposit.
Since being discovered earlier this year, Never Never and Gilbey’s North have become key targets for Gascoyne, supporting plans to mine higher-grade ore sources and increase the overall head grade at Dalgaranga.
An annual resource statement released last month confirmed the deposits have a combined initial mineral resource estimate of 1.43 million tonnes grading 2.32 grams per tonne gold for 107,200 ounces and an ore reserve of 0.38Mt at 1.63g/t gold for 20,000oz.
Gascoyne has delivered numerous high-grade intercepts outside the resource and reserve envelopes, indicating potential for ongoing growth.
An updated resource estimate for the Never Never deposit is scheduled for release before year end.
Today’s approval by the Department of Mining, Industry Regulation & Safety (DMIRS) also covers construction of the initial lift of the Golden Wings tailings storage facility; an increase to the height of existing waste dumps to 40m; and additional storage capacity for potentially acid forming waste.
About Dalgaranga
The Dalgaranga gold project is located northwest of Mt Magnet in WA’s Murchison region and covers the majority of the Dalgaranga greenstone belt.
It is comprised of several declared gold resources across more than 1,000km of tenure, most of which are centred around the active Gilbey’s Mining Centre and nearby to the company’s 2.5Mt per annum processing plant.
Recent near-mine exploration success has seen the discovery of an extension to the main Gilbey’s mineralised trend and the release of a 27,000oz maiden resource for the Gilbey’s North deposit, 140m north of the main open pit.
Never Never was discovered in August during Gilbey’s resource drill out work and an initial 78,000oz grading 3.8g/t gold resource was declared.
Both deposits are mineralised from surface, remain open at depth and are located within 1,000m of the processing plant.
Dalgaranga is the flagship project for Gascoyne and is currently the company’s single source of gold production.